According to the court, Ironshore plausibly alleged that Conemaugh Health Systems Inc. breached its obligation to cooperate with Ironshore, and didn’t disclose circumstances that gave rise to the underlying claim on its application for the Ironshore excess policy.
Gidus advises that the case is a reminder to policyholders that their duty to cooperate does not end with their primary insurers, and that they should keep all carriers, including excess carriers, aware of significant developments in litigation.
Gidus also notes that the decision demonstrates the importance of reserving the right to recoup indemnity paid under Pennsylvania law.
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